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Key Findings:

73% of asset management CEOs confident in the growth prospects of the industry
Asset management CEOs are largely optimistic about their industry's growth, with a majority expecting earnings to grow by 2.5% or more in the next three years. Workforce expansion is anticipated, with 89% planning to increase headcount. These CEOs are less worried about economic uncertainty and geopolitical complexities than their counterparts in other sectors. Mergers and acquisitions are viewed as a key growth strategy, although the appetite for large, impactful mergers has decreased.

75% of asset management CEOs say that Generative AI is a top investment priority for their firm
Asset management CEOs recognize the crucial role of Gen AI in their growth and operational strategies, with 75% prioritizing it as an investment, a figure higher than other sectors. They anticipate returns on these investments within five years. Rather than causing job losses, they see Gen AI as a tool for workforce upskilling and process enhancement, including fraud detection and cyber-attack response. Despite this, 60% express concerns about ethical issues like privacy and bias, and 83% fear regulatory barriers. Cybersecurity is a significant worry, with these CEOs expressing more concern than their counterparts in other sectors, yet only 34% feel ready to handle a cyber-attack, reflecting a drop in confidence from the previous year.

71% of respondents saying that a lack of talent could negatively impact their organization's growth prospects over the next three years.
Globally, asset management CEOs are focused on talent acquisition and retention, with 89% planning workforce expansion in the next three years due to concerns about talent shortage impacting growth. They are particularly worried about the retirement of the Boomer generation and the ensuing knowledge transfer gap. These CEOs face more competition for talent (34%) than other sectors (27%). To attract talent, strategies include enhancing ESG credentials (18%) and refocusing the employee value proposition (14%). They recognize the need for improvement in diversity and inclusion, starting at senior levels (77%). Despite expecting daily office attendance (70%) and rewarding officegoers, they do not plan workforce reductions with Gen AI adoption but foresee role changes.

70% believe that - as confidence and trust in governments decline - the public is looking to business to fill the void on societal challenges.
Asset management CEOs are striving to align their ESG goals with investor expectations, acknowledging the need to address societal issues like inclusion, climate change, and social justice. They view the push for net-zero emissions as a growth opportunity but fear the financial and positional risks of not meeting ESG targets. While 62% have fully integrated ESG into their business, only 45% are confident in achieving net-zero goals by 2030. Rapidly changing stakeholder expectations and operational challenges, such as technology gaps, complex supply chain decarbonization, and skill shortages, pose significant hurdles.

Report:

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